But the district has to be made aware of what might happen in the future. Each year new calculations are made and that $22 billion now or Alma’s $25 million may easily change. The stock market may rise, new employees may enter or leave the system, or the economy may fizzle again.

Changes have been made in the public schools retirement program. New employees will not get the same retirement benefits as some current employees or current retirees. They will not, unlike current retirees, receive a retirement health care package either.

“But that takes time before it effects the system,” he said.

In the meantime he said, “(The state) wants to reflect the liability down to the local level.”

The deficit came about for a number of reasons, not the least of which is Michigan’s declining population. Fewer employees contributing to the retirement program, cutbacks from the state, longer life spans and a recently poor economy have all contributed to the problem.

“It’s not unlike Social Security,” Jacobs said of the program that needs workers paying into the system to allow retirees to collect benefits.

Alma is no different than any other Michigan school district, or for that matter, any local governmental unit.

So according to the new accounting law, Yeo and Yeo included the unfunded pension liability in its annual audit report of the school district.

Alma schools received $23,130,168 in revenues and spent $24,340,536 by June 30.

Last year’s fund balance was $1.9 million. This year, the school’s fund balance is $1.7 million.

About the Author

Linda Gittleman’s alma mater is Western Michigan University where she majored in speech and English and her hometown is Alma. She’s worked at the Morning Sun's Alma office for more than 20 years. Reach the author at lgittleman@michigannewspapers.com
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